House prices are set to spike to record highs in the coming months thanks to a boom in activity but it won’t last long, according to new warnings.
Forecasts based on search criteria on conveyancing comparison website Reallymoving, which it says tend to mirror Land Registry data, claim the release of pent-up demand since the property market reopened in May and the Stamp Duty holiday announced in July have caused a flurry of activity.
Average house prices in England and Wales are on course to increase by 8.1% between June and October, from £308,280 to £333,331, the website claims.
On a monthly basis, Reallymoving claims the value of deals agreed between buyers and sellers in June will translate into 6% growth when they complete in September and a further 6.1% in October.
It also predicts annual house price growth will dip by 1.4% in August, the first annual price fall in thirteen months, before rebounding by 4.7% in September and 11.3% in October, which would be a record high.
However, Reallymoving warns this could be short-lived if the wider economy and jobs market struggle to emerge successfully from Government and lender support and if there is a No Deal Brexit.
Rob Houghton, chief executive of Reallymoving, said: “The UK is now officially in recession and a sharp rise in unemployment is on the horizon when the furlough scheme comes to an end in October.
“Combined with the recommencement of mortgage repayments for thousands of home owners who arranged payment holidays, households could find themselves under significant financial pressure.
“These factors will dampen demand for property through the late autumn and winter, which is likely to reverse the current spike in house price growth.”
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